CHAPTER 6. HOME IMPROVEMENT FRAUD
IC 35-43-6
Chapter 6. Home Improvement Fraud
IC 35-43-6-1
Application of chapter
Sec. 1. This chapter applies only to residential property, whichmeans real property used in whole or in part as a dwelling by aconsumer and includes all fixtures to, structures on, andimprovements to the real property.
As added by P.L.251-1987, SEC.4.
IC 35-43-6-2
"Consumer" defined
Sec. 2. As used in the chapter, "consumer" means an individualwho owns, leases, or rents the residential property that is the subjectof a home improvement contract.
As added by P.L.251-1987, SEC.4.
IC 35-43-6-3
"Home improvement" defined
Sec. 3. As used in this chapter, "home improvement" means anyalteration, repair, or other modification of residential property.However, this chapter does not apply to the original construction ofa dwelling.
As added by P.L.251-1987, SEC.4.
IC 35-43-6-4
"Home improvement contract" defined
Sec. 4. As used in this chapter, "home improvement contract"means an oral or written agreement between a home improvementsupplier and a consumer to make a home improvement and for whichthe contract price exceeds one hundred fifty dollars ($150). Multiplecontracts entered into by a home improvement supplier with aconsumer are considered a home improvement contract for thepurposes of this chapter if the multiple contracts arise from the sametransaction.
As added by P.L.251-1987, SEC.4.
IC 35-43-6-5
"Home improvement contract price" defined
Sec. 5. As used in this chapter, "home improvement contractprice" means the amount actually charged for the services, materials,and work to be performed under the home improvement contract butdoes not include financing costs, loan consolidation amounts, taxes,and governmental fees paid by or on behalf of the consumer,amounts returned to or on behalf of the consumer, or similar costsnot related to the home improvement.
As added by P.L.251-1987, SEC.4.
IC 35-43-6-6 "Home improvement supplier" defined
Sec. 6. As used in this chapter, "home improvement supplier"means a person who engages in or solicits home improvementcontracts whether or not the person deals directly with the consumer.
As added by P.L.251-1987, SEC.4.
IC 35-43-6-7
"Person" defined
Sec. 7. As used in this chapter, "person" means an individual,corporation, business trust, estate, trust, partnership, association,cooperative, or any other legal entity.
As added by P.L.251-1987, SEC.4.
IC 35-43-6-8
Unconscionable contract
Sec. 8. For the purposes of this chapter, a home improvementcontract is unconscionable if an unreasonable difference existsbetween the fair market value of the services, materials, and workperformed or to be performed and the home improvement contractprice.
As added by P.L.251-1987, SEC.4.
IC 35-43-6-9
Prima facie unconscionability
Sec. 9. For the purposes of this chapter, a home improvementcontract price in excess of four (4) times greater than the fair marketvalue of the services, materials, or work performed or to beperformed is prima facie evidence of an unconscionable homeimprovement contract.
As added by P.L.251-1987, SEC.4.
IC 35-43-6-10
Fair market value of improvement
Sec. 10. For the purposes of this chapter, the fair market value ofa home improvement is that amount which in commercial judgmentor under usage of trade would be reasonable for services, materials,and work of similar quality and workmanship.
As added by P.L.251-1987, SEC.4.
IC 35-43-6-11
Determination of fair market value
Sec. 11. For the purposes of this chapter, fair market value shallbe determined as of the time either the home improvement contractwas formed or at the time any of the work commenced under thehome improvement contract, whichever is earlier. However, if suchevidence is not readily available, the fair market value prevailingwithin any reasonable time before or after the time described, whichin commercial judgment or under usage of trade would serve as areasonable substitute, may be used.
As added by P.L.251-1987, SEC.4.
IC 35-43-6-12
Home improvement fraud; offense
Sec. 12. (a) A home improvement supplier who enters into a homeimprovement contract and knowingly:
(1) misrepresents a material fact relating to:
(A) the terms of the home improvement contract; or
(B) a preexisting or existing condition of any part of theproperty involved, including a misrepresentation concerningthe threat of:
(i) fire; or
(ii) structural damage;
if the property is not repaired;
(2) creates or confirms a consumer's impression that is false andthat the home improvement supplier does not believe to be true;
(3) promises performance that the home improvement supplierdoes not intend to perform or knows will not be performed;
(4) uses or employs any deception, false pretense, or falsepromise to cause a consumer to enter into a home improvementcontract;
(5) enters into an unconscionable home improvement contractwith a home improvement contract price of four thousanddollars ($4,000) or more, but less than seven thousand dollars($7,000);
(6) misrepresents or conceals the home improvement supplier's:
(A) real name;
(B) business name;
(C) physical or mailing business address; or
(D) telephone number;
(7) upon request by the consumer, fails to provide the consumerwith any copy of a written warranty or guarantee that states:
(A) the length of the warranty or guarantee;
(B) the home improvement that is covered by the warrantyor guarantee; or
(C) how the consumer could make a claim for a repair underthe warranty or guarantee;
(8) uses a product in a home improvement that has been diluted,modified, or altered in a manner that would void themanufacturer's warranty of the product without disclosing to theconsumer the reasons for the dilution, modification, oralteration and that the manufacturer's warranty may becompromised; or
(9) falsely claims to a consumer that the home improvementsupplier:
(A) was referred to the consumer by a contractor whopreviously worked for the consumer;
(B) is licensed, certified, or insured; or
(C) has obtained all necessary permits or licenses beforestarting a home improvement;
commits home improvement fraud, a Class B misdemeanor, exceptas provided in section 13 of this chapter. (b) A home improvement supplier who, with the intent to enterinto a home improvement contract, knowingly:
(1) damages the property of a consumer;
(2) does work on the property of a consumer without theconsumer's prior authorization;
(3) misrepresents that the supplier or another person is anemployee or agent of the federal government, the state, apolitical subdivision of the state, or any other governmentalagency or entity; or
(4) misrepresents that the supplier or another person is anemployee or agent of any public or private utility;
commits a Class A misdemeanor, except as provided in section 13(b)of this chapter.
As added by P.L.251-1987, SEC.4. Amended by P.L.81-2006, SEC.1.
IC 35-43-6-13
Enhanced offenses
Sec. 13. (a) The offense in section 12(a) of this chapter is a ClassA misdemeanor:
(1) in the case of an offense under section 12(a)(1) through12(a)(4) or 12(a)(6) through 12(a)(9), if the home improvementcontract price is one thousand dollars ($1,000) or more;
(2) for the second or subsequent offense under this chapter orin another jurisdiction for an offense that is substantially similarto another offense described in this chapter;
(3) if two (2) or more home improvement contracts exceed anaggregate amount of one thousand dollars ($1,000) and areentered into with the same consumer by one (1) or moresuppliers as part of or in furtherance of a common fraudulentscheme, design, or intention; or
(4) if, in a violation of section 12(a)(5) of this chapter, the homeimprovement contract price is at least seven thousand dollars($7,000), but less than ten thousand dollars ($10,000).
(b) The offense in section 12 of this chapter is a Class D felony:
(1) if, in a violation of section 12(a)(5) of this chapter, the homeimprovement contract price is more than ten thousand dollars($10,000);
(2) if, in a violation of:
(A) section 12(a)(1) through 12(a)(5); or
(B) section 12(a)(7) through 12(a)(9);
of this chapter, the consumer is at least sixty (60) years of ageand the home improvement contract price is ten thousanddollars ($10,000) or less;
(3) if, in a violation of section 12(b) of this chapter, theconsumer is at least sixty (60) years of age; or
(4) if the home improvement supplier violates more than one (1)subdivision of section 12(a) of this chapter.
(c) The offense in section 12(a) of this chapter is a Class C felony:
(1) if, in a violation of:
(A) section 12(a)(1) through 12(a)(5); or (B) section 12(a)(7) through 12(a)(9);
of this chapter, the consumer is at least sixty (60) years of ageand the home improvement contract price is more than tenthousand dollars ($10,000); or
(2) if, in a violation of:
(A) section 12(a)(1) through 12(a)(4); or
(B) section 12(a)(7) through 12(a)(9);
of this chapter, the consumer is at least sixty (60) years of age,and two (2) or more home improvement contracts exceed anaggregate amount of one thousand dollars ($1,000) and areentered into with the same consumer by one (1) or moresuppliers as part of or in furtherance of a common fraudulentscheme, design, or intention.
As added by P.L.251-1987, SEC.4. Amended by P.L.81-2006, SEC.2;P.L.1-2007, SEC.232.
IC 35-43-6-14
Defense
Sec. 14. For the purposes of section 13 of this chapter, it is not adefense to home improvement fraud committed against a consumerwho is at least sixty (60) years of age that the supplier reasonablybelieved the consumer to be an individual less than sixty (60) yearsof age.
As added by P.L.251-1987, SEC.4.